ATO plays hard with late lodging SMSFs

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It seems that the ATO will change the status of SMSFs which fail to lodge their SMSF annual returns by the due date (subject to a 2-week grace period) from “complying” to “regulation details removed”.  This will effectively be social exclusion for those SMSFs. Whilst this change does not alter the complying fund status of […]

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ATO – Key superannuation thresholds for 2019/20

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The ATO has released some of the key super thresholds for the 2019/20 financial year. Transfer Balance Cap This cap is $1,600,000 and is unchanged from the 2018/19 financial year. The transfer balance cap is the maximum amount of super capital which a taxpayer can transfer during their lifetime into retirement phase and thereby benefit […]

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Jumbo SMSFs and individual trustees

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While the Morrison Government is proceeding with its proposal to permit Jumbo SMSFs with 5 or 6 members, will Jumbo SMSFs have to have a company as trustee? This answer is determined by the legislation of the state or territory which applies to the SMSF. In summary, some jurisdictions do permit having 4 or 5 […]

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SMSFs: Untouched by Hayne; Jumbo size; Unwinding LRBAs

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SMSFs suffer no pain from Hayne Two key issues on Superannuation from the Hayne Royal Commission were Agency Conflict and Invisibility of Fees (especially for no service). These two issues could be summarised as essentially poor and conflicted governance. These structural issues are not present in SMSFs – as, in general, members and the controllers […]

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Work test exempt contributions (aka ‘last drinks contributions’) details now released

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In the 2018 May Budget, the Government announced the proposal to allow individuals who are recent retirees and who have attained age 65, to make last chance voluntary contributions by providing a one year exemption from the work test. This proposal will apply from 1 July 2019 to the 2019/20 and subsequent financial years. As […]

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Over $5m in super released for first home buyers scheme

In the period from 1 July 2018 to 6 August 2018 taxpayers have made 1,449 requests to the ATO under the first home super saver scheme, FHSS. These are called FHSS Determinations to enquire as to the amount which can be currently released under the scheme. Requesting an FHSS Determination does not amount to a […]

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Excess transfer balance determinations now being issued by ATO

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The ATO determines whether a taxpayer has exceeded the transfer balance limit of $1.6m and if a taxpayer has exceeded the $1.6m limit, the ATO must issue an excess transfer balance determination (ETB determination) to the taxpayer. An ETB determination means the taxpayer has too much super in pension phase. The ETB determination will specify […]

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Borrowing by SMSFs is under attack

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Changes to APRA standards have moved the goal posts for SMSFs borrowing to buy real estate. The problem is we’re late in the second half. Acquiring property through a SMSF using borrowed money may be an attractive investment choice for many, however, with banks tightening their lending criteria on the insistence of The Australian Prudential […]

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First Home Super Saver Scheme – Overview

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Under the First Home Super Saver Scheme (FHSS Scheme), eligible super members who make voluntary superannuation contributions can subsequently withdraw those contributions (and associated earnings) from the super system in order to acquire their first home.  The withdrawn contributions and associated earnings is the FHSS release amount. While the FHSS release amount, when paid, will […]

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The next two months may be last golden opportunity for LRBA

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The Government is proposing the introduction of new measures that will impact all Limited Recourse Borrowing Arrangements (LRBA), entered into or after 1 July 2018.  These measures, if enacted, will include a member’s share of any outstanding LRBA debt in the calculation of their total superannuation balance, which may have a flow-on effect on that […]

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